Circular No. 08/2013/TT-NHNN dated March 25, 2013 of the State Bank of Vietnam stipulating maximum interest rates applicable to Vietnam dong deposits of organizations and individuals at credit institutions or foreign bank branches

THE STATE BANK OF VIETNAM 

Circular No. 08/2013/TT-NHNN of March 25, 2013, stipulating maximum interest rates applicable to Vietnam dong deposits of organizations and individuals at credit institutions or foreign bank branches

Pursuant to June 16, 2010 Law No. 46/2010/QH12 on the State Bank of Vietnam;

Pursuant to June 29, 2010 Law No. 47/2010/QH12 on Credit Institutions;

Pursuant to the Government’s Decree No. 96/2008/ND-CP of August 26, 2008, defining the functions, tasks, powers and organizational structure of the State Bank of Vietnam;

At the proposal of the director of the Monetary Policy Department;

The Governor of the State Bank of Vietnam promulgates the Circular stipulating maximum interest rates applicable to Vietnam dong deposits of organizations and individuals at credit institutions or foreign bank branches.

Article 1. Credit institutions and foreign bank branches shall fix interest rates applicable to Vietnam dong deposits of organizations (excluding credit institutions and foreign bank branches) and individuals, including sale promotion expenses in all forms, as follows:

1. The maximum interest rate applicable to demand deposits and deposits with a term of under 1 month is 2% per annum.

2. The maximum interest rate applicable to deposits with a term of between 1 month and under 12 months is 7.5% per annum; particularly, people’s credit funds and microfinance institutions may fix the maximum interest rate applicable to deposits with a term of between 1 month and under 12 months at 8% per annum.

3. Credit institutions and foreign bank branches shall fix interest rates applicable to deposits with a term of 12 months or longer on the basis of market capital supply and demand.

4. Deposits include demand deposits, term deposits, saving deposits, deposit certificates, term bills, bills, bonds and other forms of deposits received from organizations (excluding credit institutions and foreign bank branches) and individuals as prescribed in Clause 13, Article 4 of the Law on Credit Institutions.

Article 2. The maximum interest rates applicable to deposits prescribed in Article 1 of this Circular apply to the method of interest payment upon maturity and other methods of interest payment that are converted into the method of interest payment upon maturity.

Article 3. Credit institutions and foreign bank branches shall publicly post up the interest rates applicable to Vietnam dong deposits at deposit-receiving places in accordance with the regulations of the State Bank of Vietnam. When receiving deposits, credit institutions and foreign bank branches are prohibited from providing sale promotion in any form (cash, interest rate or other forms) in contravention of law and this Circular.

Article 4. Organization of implementation

1. This Circular takes effect on March 26, 2013, and replaces Circular No. 32/2012/TT-NHNN of December 21, 2012, of the Governor of the State Bank of Vietnam, stipulating maximum interest rates applicable to Vietnam dong deposits of organizations and individuals at credit institutions or foreign bank branches.

2. The interest rates applicable to Vietnam-dong term deposits of organizations and individuals at credit institutions or foreign bank branches which arise prior to the effective date of this Circular may be implemented until the end of their terms. If organizations and individuals do not come to draw their deposits upon the expiration of the agreed term, credit institutions or foreign bank branches may fix interest rates applicable to such deposits in accordance with this Circular.

3. The Banking Inspection and Supervision Agency and State Bank branches in provinces and centrally run cities shall examine, inspect and supervise the implementation of the regulations on interest rates applicable to Vietnam dong deposits; and apply within their competence measures to handle credit institutions or foreign bank branches that violate this Circular.

4. The director of the Office, the director of the Monetary Policy Department and heads of units under the State Bank of Vietnam, directors of State Bank branches in provinces and centrally run cities, chairpersons of the Boards of Directors or Member Councils and general directors (directors) of credit institutions and foreign bank branches, and related organizations and individuals shall implement this Circular.-

For the State Bank Governor
Deputy Governor
NGUYEN DONG TIEN